Key facts
- UK business confidence reached a four-month high in July.
- Overall confidence rose 5 points to +49.
- Confidence in the wider economy jumped 11 points to +42.
- Manufacturing sector confidence increased by 14 points to +47.
- The survey polled 1,200 businesses between July 1 and July 16.
British businesses reported a significant increase in economic confidence during July, reaching a four-month high. The Lloyds business barometer survey indicated a rise of 5 points to +49, surpassing its 12-month average of +47. This uplift is attributed to a more stable global environment, characterized by lower energy prices and reduced uncertainty, according to Hann-Ju Ho, senior economist at Lloyds commercial banking.
The net balance for confidence in the wider economy saw a substantial leap of 11 points to +42. Domestic firms specifically reported an 11-point increase in confidence to 25%, partly driven by stronger demand. Optimism regarding companies' trading outlook remained steady at +56. Smaller businesses with annual sales below £1 million also experienced a notable improvement in sentiment.
Confidence within the manufacturing sector showed a marked increase, rising 14 points to +47, exceeding its 12-month average of +45. The data was compiled from online polling of 1,200 businesses with annual sales of at least £250,000, conducted by Ipsos between July 1 and July 16.